India's Madoff? Accused of duping 2,500 investors in police net

NEW DELHI: Crime branch officials say he has cheated over 2,500 people in the past four years of no less than Rs 60 crore. However, when thespecial operation squad (SOS) reached his home in Dehra Dun on Thursday, Naveen Sharma, chairman of Money Mantra and Big Leap Multi Trade Limited, seemed to have only a quilt as his asset.

Almost a month after duped investors protested in the city demanding his arrest , Sharma was nabbed on Thursday. He had fled from his Gurgaon residence on April 16, 2009. Initial investigations revealed that this could become one of the big frauds to unfold in the capital . ‘‘ We have received 264 complaints so far, adding up to a total of over Rs 8 crore.

But documents seized from the accused point to at least 2,500 similar cases,’’ said Amulya Patnaik, joint commissioner (crime). The total fraud was allegedly worth more than Rs 60 crore. ‘‘ This is a conservative estimate. It could be even bigger,’’ said a senior officer at the economic offences wing (EOW).

According to crime branch sources, one Akshay Kumar Singh Chauhan, a resident of Uttam Nagar, complained that he had been cheated by Sharma to the tune of Rs 1.97 crore which he had invested on the promise of lucrative returns . He was also given post-dated cheques against his investment.

The cheques bounced. Another investor, Ishwar Singh, was handed four cheques by Sharma when he deposited the minimum membership fee of Rs 15,000. He was assured a return of Rs 1000 every month for the next three years. He finally lost his deposit. Said Dr H Narang, who invested in Money Matters: ‘‘ Whoever wanted their money back had to let the companies know 20 days in advance. After taking back the cheques for investment and outstanding interest, money was actually refunded to the individual investor.’’

According to Patnaik, Sharma used to invest the money he collected in the stock market . However, plummeting share prices and the global meltdown saw him suffering huge losses . But he continued paying the fixed monthly return to the investors till the beginning of 2009, all the while being sucked into a debt trap

When nothing was left in his account, he disappeared from his Gurgaon home. ‘‘ Investigations revealed that Sharma also operated anothercompany — Big Leap Marketing Limited — from his office at sector 7 in Dwarka. To lure investors , he even advertised in leading newspapers. Various incentive schemes were launched for existing members to attract others. He even promised higher returns to those who brought new clients,’’ said an investigating officer.

It was this modus operandi that brought over 40% of his ‘‘ clients’ ’ from the military and paramilitary forces — including the NSG, Army, Navy, SPG and Delhi Police. ‘‘ Slain NSG commando Sandeep Unnikrishnan reportedly invested in his company. We are investigating if he was cheated. No complaints have been received so far from his family,’’ said a crime branch source. So far, over 100 complaints have been from men in uniform.

Making of a fraudster

NAVEEN SHARMA

Profile : An MBA from Delhi and chairman of Money Mantra and Big Leap Multi Trade Ltd. Married in 2001, he has two children. Father is retired Delhi government official

Crime graph: 264 complaints. Data shows over 2,500 people invested in his companies in the past 4 years

Money involved: Total forgery could be to the tune of Rs 60 crore. Complaints of fraud add up to Rs 8 crore

Victims’ profile: Residents of Delhi’s southwest district, Gurgaon and Manesar. Around 40% comprise personnel from NSG, Army, Navy, SPG and Delhi Police. Martyred NSG hero Major Unnikrishnan also allegedly cheated

Modus operandi : Members paid a minimum of Rs 15,000 being assured Rs 1,000/month returns for 3 years. Money invested in futures and option trading. Trouble arose after share market crashed

Present status: Made pretence of returning investors’ money at 10% interest till April, but cheques bounced. Went underground after going bankrupt. Nine of his accounts frozen. Found with only one quilt in his possession at Dehradun hideout.